Which of the Following Is One of the Conditions Necessary

question 7

Multiple Choice

Which of the following is one of the conditions necessary for an amalgamation to result in a tax-free combination?

• A)At least one of the corporations must be Canadian.
• B)The two corporations must be in a similar line of business.
• C)50 percent of the assets and liabilities of the old corporation must become assets and liabilities of the new corporation.
• D)All of the shareholders of the old corporations must become shareholders of the new corporations.